Carrefour to open more stores in 2009; expects 15% sales growth

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CHINA - French retailer Carrefour has announced plans to open at least 28 stores in China this 2009, in anticipation of sales growth of more than 15%.

Carrefour said that it wants to expands beyond the 42 Chinese cities it is already in, and is optimistic about the opening of 28 stores – up from the 22 in 2008 – even amidst the global financial crisis. It will target the smaller Chinese cities in this year’s expansion.

Patrick Ganaye, vice president, Carrefour China, said, “We continue the expansion in big cities. We are now in 42 cities and we try to grow in more and more cities."

He added that Carrefour’s business in China has not been affected by the economic slowdown, which has seen many factories in China laying off workers – those took place in rural area, he noted, and not in the urban cities where the retailer is in.

Although sales dropped slightly in November 2008 to 20.8%, in comparison to October’s 22%, Carrefour has increased the intensity of its price promotions since November and has seen “very positive results”.

"When you start to be in crisis, people look at price. You should have the best price," Ganaye said.

Government data for the last quarter 2008 indicate that China’s overall retail sales growth held up better than expected. Sectors that were affected were mainly big-ticket items such as passenger cars, which have been hit.